In the midst of a thriving electric vehicle (EV) market, Lucid Motors’ (NYSE: LCID) stock has experienced a remarkable surge in recent days.
Fueled by strong deliveries and impressive production data from the broader sector, the carmaker’s shares have been on a tear, reflecting the growing demand and investor confidence in the future of the auto industry.
Notably, the company’s shares have gained 15% this month, surging from the June 30 closing price of $6.89 to the current $7.93 per share as of July 11.
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The bulk of its gains came on Monday, July 10, when LCID soared 6.4%.
Key near-term resistance cleared
Following yesterday’s surge in its stock, LCID cleared an important near-term resistance level at the 100-daily moving average (DMA), which will now act as a support level.
With bulls now in the driving seat, the next target is 200-DMA, which stands at $9.20, while the $8.80 – $9.20 zone could also offer some degree of resistance given its historic importance.
Over the past month, the stock gained nearly 25% over the past month, adding almost $4 billion in market cap during the period, rising from $11.55 billion to $15.49 billion.
What is fueling the LCID rally?
Lucid’s recent rally can be attributed to a combination of factors. The company’s CEO has been continuing discussions regarding future midsize vehicle launches, generating anticipation among investors.
In a recent interview with Auto Express, Lucid CEO and CTO Peter Rawlinson said that after launching a new version of Lucid Air and Gravity SUV, the company intends to put two more cars on the market, aimed at competing with Tesla’s (NASDAQ: TSLA) Model 3 and Model Y.
Additionally, Lucid’s strong delivery numbers have showcased their ability to meet demand, while the overall strength of the EV sector has provided a favorable market environment for the company’s growth.
Strong deliveries and Aston Martin add to positive sentiment
In its Q1 2023 report, the US-based automaker said that its vehicle production and deliveries considerably increased year-over-year.
The company produced 2,314 Lucid Air vehicles during the quarter, up 235% compared to a year ago, while customer deliveries rose by 290% to 1,406.
The carmaker also struck a major deal with UK auto giant Aston Martin, which will pay a $232 million technology access fee to Lucid in cash and stock over a 3-year period.
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